South Korea Weighs Pushing Crypto Tax to 2029

South Korea is considering postponing its cryptocurrency income tax until 2029 because of difficulties exchanging digital-asset tax information with the United States. The tax is currently scheduled to take effect on Jan. 1, 2027.

The proposed tax would impose a combined rate of 22% on annual cryptocurrency gains above 2.5 million Korean won, or about $1,883. The rate includes a 20% income tax and a 2% local tax.

South Korea plans to apply the OECD’s Crypto-Asset Reporting Framework in 2027. The United States is scheduled to join the framework in 2029. The system is intended to help participating countries exchange information about digital-asset transactions and related taxes.

A South Korean official indicated that the government is considering another delay because the United States accounts for nearly half of the virtual-asset market. The government has not made a final decision.

“We are discussing postponing the implementation of virtual asset taxation,” a Blue House official said.

South Korea first proposed the cryptocurrency tax policy in 2020. Its implementation has been delayed several times. The National Tax Service currently lists Jan. 1, 2027, as the start date for taxing cryptocurrency income.